KLX reported Aerospace Solutions Group (ASG) segment revenues, primarily from fasteners, increased 11.7% to $388.1 million in the opening quarter of 2018, driven by 5.9% organic revenue growth.

“On a channel basis, aftermarket organic revenue growth of 6.6% was particularly strong, driven by a substantial increase in aircraft maintenance activity among MROs, repair shops and airlines in the Americas, Asia and Europe,” the company stated.

OEM channel revenues rose 5.4% on an organic basis, “driven by an increase in activity from commercial aerospace manufacturing customers and initial revenues from the ramp-up of new programs.”

ASG operating earnings totaled $54.7 million and operating margin was 14.1%. ASG’s Adjusted to exclude one-time costs related to the strategic alternatives review and the transition to ASG’s new global distribution and operations center, operating earnings reached $65.2 million, or 16.8% of revenues.

Consolidated revenues at KLX increased 21.3% to $499.1 million. Adjusted operating earnings and Adjusted operating margin were $75.5 million and 15.1%, respectively. Adjusted Net Earnings increased 63.8% to $57 million, and Adjusted Net Earnings per diluted share climbed 67.2% to $1.12.

In May, KLX announced an agreement to sell its ASG business to Boeing for $4.25 billion.

With approximately 2,000 employees,  KLX’s Aerospace Solutions Group is headquartered in Miami, with facilities in more than 15 countries. KLX – the former B/E Aerospace fastener division – distributes fasteners, bearings and other parts for commercial, military and business jets and provides logistics services. Web: KLX.com

Boeing said KLX’s Aerospace Solutions Group will remain in Miami but will be integrated with aerospace parts distributor Aviall, which Boeing acquired in 2006 for $1.7 billion. The ASG business will transition to a new global distribution and operations center.

KLX said it will spin-off its Energy Services Group (ESG) business to shareholders. Web: KLX.com